Different investment strategies call for different financing solutions. Depending on your goals, property, income, and financial profile, options may include:
Conventional Investment Property Loans
Traditional financing for qualifying residential investment properties using the borrower's income, assets, credit, and eligible rental income.
DSCR Loans
Investor financing that may qualify primarily using the property's rental income and cash flow rather than traditional personal income documentation.
Bank Statement & Non-QM Loans
Alternative financing options for self-employed investors or borrowers whose income or financial situation doesn't fit traditional underwriting guidelines.
Jumbo & Specialty Investment Loans
Financing options for higher-value investment properties and situations that may fall outside conventional lending guidelines.
Cash-Out Investment Property Refinance
Qualified investors may be able to access equity from an existing rental property for improvements, additional property purchases, or other investment purposes.
Qualify Based on the Property's Cash Flow
A Debt Service Coverage Ratio (DSCR) loan is designed for real estate investors and may allow qualification primarily based on the property's qualifying rental income rather than the borrower's traditional personal income.
The lender generally compares the property's qualifying rental income with its applicable monthly housing expense to determine the Debt Service Coverage Ratio.
DSCR financing may be especially useful for investors who:
Are self-employed
Own multiple rental properties
Have significant business or tax deductions
Prefer not to qualify using traditional income documentation
Want to continue building a real estate portfolio
Although rental income is an important part of qualification, lenders may also consider credit, property value, down payment or equity, reserves, property type, and other program requirements.
Properties That May Be Financed
Depending on the loan program and property eligibility, investment financing may be available for:
Single-family rental homes
Condominiums and townhomes
Duplexes, triplexes, and four-unit properties
Long-term rental properties
Short-term and vacation rentals, when eligible
Properties within a growing investment portfolio
Investment loan approval isn't based only on the borrower. The property type, value, condition, rental income, intended use, and marketability may also affect which financing programs are available.
Financing for New & Experienced Investors
You don't need to own a large real estate portfolio to explore investment property financing. Loan options may be available for both first-time and experienced real estate investors.
The right financing will depend on factors such as:
Investment experience
Credit profile
Available down payment and reserves
Property type
Expected rental income
Purchase price or property value
Whether you're purchasing or refinancing
As your real estate portfolio grows, your financing needs may change. We can review your existing properties, available equity, rental income, and future acquisition plans to help determine which financing options may fit your investment strategy.
Some investment property loan programs may allow the property to be titled in an eligible LLC or other business entity, subject to the lender's program requirements.
Depending on the program, the individual borrower or members of the entity may still be required to provide personal guarantees and other documentation.
Plan the Ownership Structure Before Closing
If you're considering purchasing an investment property through an LLC, let me know before the loan is structured. We can review the proposed ownership along with the financing options so the loan program and vesting requirements work together.
Have an Investment Property in Mind?
Whether you're purchasing your first rental, adding another property to your portfolio, or refinancing an existing investment, we can review the property and determine which financing options may fit your goals.
If you already have a property in mind, it helps to have:
Let's Find the Right Financing for Your Investment
We'll compare the available options based on the property, cash flow, financing structure, cash required, and your investment goals.
REQUEST AN INVESTMENT LOAN REVIEW
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